North Carolina Sports Betting Tax Rate Set to Rise in Upcoming Budget, Sources Point to 20-25 Percent Range

North Carolina is headed toward a higher sports betting tax rate as part of an ongoing state budget negotiation, according to reporting from WRAL. House budget writer Representative Donny Lambeth confirmed the House and Senate have agreed to raise the rate paid by the state’s eight licensed sportsbook operators, though specific figures have not been publicly confirmed. Sources familiar with the discussions told WRAL that a tentative agreement was reached at the lower end of a 20-to-30-percent range, most likely around 20 to 25 percent.

North Carolina currently collects an 18 percent tax on gross wagering revenue from licensed operators, a rate in place since the legal market launched in March 2024. The state was the last major-population state to launch a competitive multi-operator online sports betting market, and its launch was broadly successful, drawing in many of the major national platforms including DraftKings, FanDuel, BetMGM, and others.

Why Lawmakers Are Raising Taxes

State legislatures across the country have increasingly targeted sports betting tax rates as a revenue-raising mechanism as markets mature. North Carolina is following a pattern seen in other states where the initial tax rate, set competitively to attract operators and establish the market, is later revised upward once the market is established and operators have little choice but to continue operating in the state.

Last year, the North Carolina Senate included a 36 percent sports betting tax rate in its budget proposal. The House passed a budget maintaining the 18 percent rate, and no final deal was reached on the point. The current tentative agreement at roughly 20 to 25 percent represents a more moderate compromise. The final number could still change as broader budget negotiations are completed, and industry groups are actively lobbying against any increase.

Part of the deal reportedly includes directing a portion of sports betting tax revenue to UNC and NC State, at levels potentially similar to what other universities already receive. That provision is aimed at building broader legislative support for the budget by tying sports betting revenue to popular higher education institutions in the state.

What It Means for Sports Bettors in North Carolina

Tax increases on operators do not translate directly into worse odds or fewer bonuses immediately, but sustained margin pressure tends to reduce promotional spending over time. North Carolina is one of the youngest legal sports betting markets in the United States, and operators have been competing aggressively with promotions since the market launched. A higher tax rate would put additional pressure on those promotional budgets.

The final budget is expected to be announced in the coming weeks. If the tax increase is confirmed, North Carolina would still be far below the highest state rates, such as New York’s 51 percent, but would represent a meaningful move from its current competitive position. Bettors in the state can compare current options and available welcome offers through our North Carolina sports betting guide, and check the latest promotions from the state’s top operators including the current DraftKings promo code.